Indonesia Bourse May Again Test Resistance At 7,200 Points

(RTTNews) - The Indonesia stock market bounced higher again on Tuesday, one day after ending the two-day winning streak in which it had gained more than 15 points or 0.2 percent. The Jakarta Composite Index now sits just beneath the 7,190-point plateau and it's predicted to open to the upside again on Wednesday.

The global forecast for the Asian markets is positive on continued optimism over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The JCI finished modestly higher on Tuesday following gains from the financial shares and mixed performances from the cement and resource sectors.

For the day, the index jumped 68.32 points or 0.96 percent to finish at the daily high of 7,187.85 after moving as low as 7,112.82.

Among the actives, Bank CIMB Niaga fell 0.30 percent, while Bank Mandiri advanced 0.84 percent, Bank Syariah Indonesia gained 0.59 percent, Bank Central Asia collected 0.54 percent, Bank Rakyat Indonesia climbed 0.91 percent, Indosat Ooredoo Hutchison gained 0.53 percent, Indocement skidded 1.08 percent, Semen Indonesia and Timah both gathered 0.82 percent, Indofood Suskes increased 0.80 percent, United Tractors perked 0.11 percent, Astra International added 0.45 percent, Energi Mega Persada surged 5.61 percent, Astra Agro Lestari improved 0.71 percent, Aneka Tambang retreated 1.50 percent, Vale Indonesia dropped 0.95 percent, Bumi Resources plunged 3.37 percent and Persahaan Perseroan Telekomunikasi and Bank Negara Indonesia were unchanged.

The lead from Wall Street is upbeat as the major averages opened higher on Tuesday and remained in the green throughout the session.

The Dow jumped 251.90 points or 0.68 percent to finish at 37,557.92, while the NASDAQ advanced 98.03 points or 0.66 percent to close at 15,003.22 and the S&P 500 added 27.81 points or 0.59 percent to end at 4,768.37.

Optimism about the outlook for interest rates continued to contribute to strength on Wall Street following the Federal Reserve's monetary policy announcement last week.

Adding to the positive sentiment, San Francisco Federal Reserve President Mary Daly said interest rate cuts are likely to be appropriate next year because of an improvement in inflation.

In economic news, the Commerce Department reported a substantial increase in new residential construction in the U.S. in November. Also, building permits slumped more than expected.

Oil prices rose on Tuesday, extending gains on supply concerns after several companies rerouting their vessels due to the attacks by Houthi militants in the Red Sea. West Texas Intermediate Crude oil futures for January rose $0.97 or 1.3 percent at $73.44 a barrel.